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TMI Blog1992 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... iz. steel forgings. They have taken deemed credit in respect of these inputs in terms of the Ministry s order dated 1-3-1988 at the rate of Rs. 365 per M. Ton. The credit so taken was also immediately utilised by them for payment of duty on the final product. The aforesaid deemed credit order of the Ministry was subsequently revised by another order dated 1-6-1989 under which the rate of deemed credit was enhanced from Rs. 365/- to Rs. 500/- per M. Ton. On that day, they had a balance of 1829.73 M. Tons of inputs lying with them. They claimed the differential additional credit consequent on enhancement of the deemed credit from Rs. 365/- to Rs. 500/- P.M.T. in respect of the aforesaid quantity. This was rejected by the Asstt. Collector, aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that credit taken at the rate of Rs. 365/- as per the earlier order of the Ministry has already been utilised towards payment of duty on final product. Hence, the additional credit in terms of the revised order cannot be bestowed on the appellants, because the revised order cannot be retrospectively made applicable. The point that some inputs were received under Gate Passes evidencing payment of duty at the rate of Rs. 500/- per M.T. was not agitated before the lower authorities. He could not confirm on the factual position. 5. After hearing both the sides, we looked into the order of the Ministry issued under the proviso to Rule 57G(2) vide order F. No. 342/1/88-TRU, dated 1-6-1989. Paras 2 3 of the said order, which are relevant, ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial duty of excise leviable under the Finance Act, 1989 (13 of 1989) as the case may be." 6. From the above, it is evident that where, in respect of any inputs, the credit of specified duty paid thereon has already been availed of under any Rule or notification granting such credit, no such credit shall be allowed in terms of the Ministry s order dated 1-6-1989. The point made before us by the appellants Counsel is that they have availed only deemed credit under the erstwhile Ministry s order and have not availed credit of the specified duty as defined in para 3 of the order. The argument is no doubt attractive, but it has to be seen in the context of the Modvat Scheme and the provisions for allowing deemed credit under the second pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexus to the rate of duty leviable under Section 3 of the Central Excises Act or the additional duty of Customs under Sec. 3 of the Customs Tariff Act, as the case maybe. When this specified duty has already been availed of under Rule 57A, the bar envisaged under Para 2(1) of the order dated 1-6-1989, stands attracted. Now a question may still arise as to the need for reference to the stock of inputs lying in stock on or after 1-6-1989 in the Ministry s order, as eligible for the credit at the rate of Rs. 500/- per M.T. On this, we are to observe that credit at the rate of Rs. 500/- can be taken in respect of such stock, if credit has not been availed of earlier. In this view of the matter, in so far as the issue before us is concerned, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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